30 May 2012 – final results
Results for 2011 have been released and as expected these confirmed a tough period for the recycling products and services group. Revenue slipped to £28.0m (2010: £30.7m) and a loss before tax of £0.8m was recorded versus a profit before tax of £1.5m a year earlier. Adjusted earnings per share were 6.7p (2010: 15.3p). No final dividend was declared.
Of more importance, the company remains upbeat with regards to its prospects for the longer term. The current year has clearly gone well so far and in the four months to the end of April net debt was reduced from £4.1m to £3.3m. Although it is disappointing that the business has faced challenges in recent times, we continue to believe that Straight is well managed and operates in an attractive niche area. We now rate the shares as a LONG TERM BUY as there is a strong possibility of weakness in the share price in the near term.